Sicilian indemnities 195,348
The figures were as follows: Ordinary expenditure, £ T 3 2, 997, 000; extraordinary expenditure, £T2,696,000; revenue £T26,015,000, leaving a deficit of £T9,678,000, which was brought up to over £T10,500,000 by special credits for the pension fund, the payment of debts incurred by Abdul-Hamid and indemnities to officials.
An unstable morass of disorder, ineptitude and corruption was left by the last government.
It was intended to assign to the war department £T3,804,918, to the grand master of ordnance £T358,108, to the admiralty £T93,912, and to the ministry of finance £T2,443,202 for the payment of the war indemnities in Thessaly and other urgent liabilities, the estimated aggregate extraordinary expenditure thus amounting to £T6,700,140.
The various treaties of Prague, Berlin and Vienna which followed the armistice secured the annexation by Prussia of Hanover, the Elbe duchies, the electorate of Hesse, Nassau and Frankfurt, the dissolution of the existing confederation and the creation of a new North German Confederation under the hegemony of Prussia, and the payment of war indemnities to Prussia (the Austrian share being 6,000,000).
1 Besides this, his work included the reconstruction of the military frontier of the Netherlands, and the conduct of the financial negotiations with Messrs Baring, by which the French government was able to pay off the indemnities due from it, and thus render it possible for the powers to reduce the period of armed occupation from five years to three.
The 9,000,000 was sufficient to pay the Alexandria indemnities, to wipe out the deficits of the preceding years, to give the Egyptian treasury a working balance of LE 500,000 and thereby avoid the creation of a fresh floating debt, and to provide a million for new irrigation works.
Thanks to Hughs support and to the good offices of Otto and his brother Bruno, archbishop of Cologne and duke of Lorraine, Lothair was chosen king and crowned at Reims. Hugh exacted, as payment for his disinterestedness and fidelity, a renewal of his sovereignty over Burgundy with that of Aquitaine as well; he was in fact the viceroy of the kingdom, and others imitated him by demanding indemnities, privileges and confirmation of rights, as was customary at the beginning of a reign.
After paying out of the capital the sums required for the indemnities due for the burning of Alexandria and the deficits of the years 1882 and 1883, it still had a million sterling, and boldly invested it in the improvement of irrigation.